Congressional Cryptocurrency Reform Targets Regulators Rather Than the Industry Itself

Olshan litigation partner John Moon and counsel Daniel Stone authored an article in The Legal Intelligencer entitled “Congressional Cryptocurrency Reform Targets Regulators Rather Than the Industry Itself.” In the article, John and Dan examine the CLARITY Act, which recently passed the House of Representatives, and situate it in the context of the 2022 cryptocurrency crisis.  John and Dan compare the CLARITY to prior legislative responses to financial crises. They describe the primary effect of the CLARITY Act as providing guidance as to regulatory jurisdiction but note that “[w]hile providing jurisdictional clarity is certainly helpful, it does little to protect consumers or prevent the next ‘crypto winter.’ While many crypto industry insiders are praising the passage of the CLARITY Act for regulatory clarity, the regulatory burden imposed by the CFTC remains uncertain. John and Dan explain how the current legislative package is focused on crypto regulators and not the industry itself, as was the focus of legislative reforms after prior financial crises. This is consistent with the new administration’s approach to cryptocurrency regulation. “In 2025, with the inauguration of the second Trump administration, the SEC’s Enforcement Division has ‘pulled in its claws’ with respect to prosecuting crypto fraud,” they write. “Since the inauguration, the SEC has settled or otherwise abandoned many of its crypto-asset enforcement actions and investigations, including the multiyear action against Ripple Labs and its investigation into Uniswap. Likewise, the 2022 ‘crypto winter’ appears to be a faded, unpleasant memory, as Bitcoin prices are riding an all-time high.”